Beat the Cell Phone Data Cap Game

The “Wireless Spectrum Crunch”

The Consumer Electronics Show (CES) is usually a happy place, filled with the latest in shiny, shiny products. Surprisingly, over the last two years, FCC Chairman Julius Genachowski brought the mood down a bit, bringing up what he’s termed a "spectrum crunch." Put simply, the increasing number of smartphones and apps and the data they consume have strained the amount of available wireless spectrum, which the airwaves companies license from the government to transmit wireless signals. Though there is indeed a finite amount of wireless spectrum, the "available" includes a large chunk of spectrum serving as a pawn in political maneuvering. The government and television broadcasters hold a vast amount of spectrum. Selling it can bring them revenue, but holding onto it gives them a powerful negotiation tool that can be worth a lot more.